Food sales grew by 5.5% in 2015.
Convenience is now a major driver of food choices in Singapore, and analysts say it’s the sign of a food industry that has undergone maturation.
According to a research report by BMI Research, Singapore’s positive long-term economic outlook, increasing tourism, and low unemployment levels will ensure that domestic food and beverage consumption remains high.
“Singapore is therefore likely to continue playing a significant role in the regional growth strategies of multinationals, as the country's solid existing spending levels provide steady returns on investments and thus support companies' expansions into emerging markets,” BMI Research said.
Specifically, BMI Research adds that it expects pasta and cereal products to perform particularly well, citing convenience as one of the major driver of consumer choices in Singapore.
“Pasta products are set to grow at a five-year CAGR of 6.2% over our forecast period, albeit coming from a low base. Pasta is a highly convenient, versatile and relatively cheap food that appeals to time-constrained and price-conscious consumers. Other cereal products will show the strongest growth, growing at a CAGR of 7.3% to 2020,” BMI Research added.
Meanwhile, confectionery sales in Singapore are also expected to experience fairly good growth in terms of value and volume, with chocolate leading the way with a predicted growth at a CAGR of 6% by 2020.
“While the industry is certainly mature, Singaporean consumers have shown a strong desire for new and innovative products, and a willingness to pay a premium for these products will remain a major driver behind value sales growth,” BMI Research said.
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